Oracle opens new data centres in the UAE and Saudi Arabia as AI demand grows

Oracle has added a couple of new data centres in the UAE and Saudi Arabia over the last six months and will open more in the next six months to meet rising artificial intelligence adoption. Cormac Watters, Oracle's executive vice president of applications for Europe, Middle East, and Africa, told The National about the expansion at Oracle AI World in Las Vegas. The company already has cloud regions in Dubai, Abu Dhabi, Jeddah, and Riyadh, alongside previously announced plans to open one in Saudi Arabia's Neom megaproject.

Oracle is reluctant to disclose all facility locations due to the geopolitical situation and concerns over bad actors. Following the regional war that began on February 28, when civilian infrastructure in the UAE and Saudi Arabia faced Iranian attacks, and amid continuing attacks on Saudi Arabia by Yemen's Houthi rebels, data sovereignty has become the primary focus for regional companies. Watters said customers are waiting on routine purchases while continuing strategic transformations, frequently asking where data is stored and "who has the big kill switch".

The physical threat of a data centre being hit has also prompted discussions about "digital embassies". This approach allows sovereign cloud infrastructure in one city to be physically lifted and relocated to another country in the event of a disaster while maintaining its legal and operational sovereignty. While currently doable for global companies such as Oracle, regulatory considerations for some entities, including banks, still need to be approved.

The Middle East is currently the fastest-growing subregion in Oracle's Europe, Middle East, and Africa division. Last year, the UAE, Saudi Arabia, and Qatar announced AI investment plans exceeding 5 per cent of GDP, amounting to about $120 billion, according to the International Monetary Fund. Watters said Middle East and UAE organisations are probably faster at adopting AI than anyone else because they are used to change and do not have the legacy of 50-year-old systems.

Outside the UAE and Saudi Arabia, Oracle is seeing opportunities in Qatar and Kuwait, where it will go to market either directly or with partners. As Syria opens up its economy, Oracle also views it as an interesting market in the Middle East and may choose to look at it through a distributor partnership with one of its big partners.

Sources: The National

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